A smart business owner knows when and where to invest for the growth of their business. In times past, making the hefty investment in an on-site, full-time chief financial officer (CFO) was given. After all, keeping an eye on and guiding finances, key performance indicators, and business strategy is no easy task.
But times have changed. You can get amazing benefits from outsourcing a CFO for your business's financial needs.
What is an Outsourced CFO?
CFOs are in charge of all aspects of a business's financial strategy and well-being. They are responsible for a number of tasks including reporting, taxes, cash flow, and financial planning.
Sometimes referred to as a fractional CFO (e.g., “ a fraction of the time”) or a virtual CFO, outsourced CFOs can provide all of these services to your business or only the ones you choose.
As a consultant, they can work on-site, remotely, or virtually, and either on a special project or consulting on an ongoing basis. This gives the company the experience and expertise of a high-end CFO without the in-house cost —salary, benefits, and office space — of a full-time executive.
Typically, a fractional CFO is an individual or a team of financial experts dedicated to the financial side of their client’s business. An outsourced CFO provides financial insights, set up good systems, and helps you strategize for your future growth and success.
Learn more about Focused Energy’s financial services
Benefits of an Outsourced CFO
See beyond the numbers
While it’s not uncommon for businesses to hire a part-time bookkeeper or accountant, their expertise is often limited to recording financial transactions and overseeing payroll. For example, bookkeepers rarely have the expertise to look beyond the numbers to provide strategic guidance or analyze business performance.
Gain financial insights
An outsourced CFO can give a fresh perspective on your business's finances and processes. They have in-depth knowledge of the best financial practices and can help your business set up a good financial structure, minimize risks and take advantage of market opportunities. They are an expert business strategist who can help set financial goals and make an actionable business plan to achieve them.
The average salary of a CFO today is well over $300,000. This number is completely out of reach for many businesses. Outsourced CFOs are paid on a contract basis. You can determine how much or little you need their services and what will fit into your company's budget.
Does Your Business Need an Outsourced CFO?
As a small to a medium-sized business owner, you may not have even considered having a CFO on staff at this point. However, having financial guidance from an industry professional will help you grow your business.
Most organizations that utilize outsourced CFOs are at a pivotal point in their growth where they need the extra expertise but are not in a place to hire someone full-time. These growth points could include:
- Cash flow issues
- Outgrowing existing systems/operations
- Raising capital
- Preparing for growth
- Fine-tuning strategy
Most business owners wear many hats, but there is often a lack of time or knowledge to be able to maintain the finance department at optimum performance. Having some or all of your financial needs outsourced to experts can not only free up your time but also give you critical information for your business.
In fact, hiring a CFO consultant can revolutionize your operations, ensure you're within budget constraints, and help your business stay ahead of the competition.
Traits of a Good Financial Firm
Finance is based on solid working relationships, so hiring a CFO that’s a good fit, remote or otherwise, is essential.
You should always look for a financial firm with experienced, knowledgeable staff who can easily help you resolve complex issues, setup proven systems, and give actionable insights on growing your business.
Each business is different, so you want someone who will work with you individually to determine how to effectively help you where you are at any stage of your growth cycle. Working with a company that listens to you, understands your business needs and takes your company’s vision as seriously as you do is essential.
At Focused Energy, our team of business financial advisers work with you one-on-one, listening to your goals to determine your specific needs. We offer a variety of services and can customize them to best suit you.
We want to see your business thrive. Helping business owners reach their financial goals is why we do what we do. If you are looking for a financial firm for outsourced CFO services, contact Focused Energy today to schedule your free consultation with one of our expert financial advisers.